Photo: Depositphotos
6 October 2024, Riyadh – The Saudi stock market is suffering significant losses amid an escalating regional conflict and low oil prices, which is causing concern among investors, Bloomberg reports.
During the first three days of October, the Tadawul All Share Index fell by 2.2%. This comes as hostilities between Israel and Iranian-backed Hezbollah intensify, leading to growing market uncertainty. Investors are experiencing the worst start to the fourth quarter in many years, as geopolitical tensions have once again become a key factor affecting stock market performance.
Despite the previous summer rally, the market was unable to avoid the negative impact. Low oil prices, which remain below the levels required to finance Saudi Arabia’s ambitious economic diversification programme, also contribute to the drop in investment activity.
Economic analysts note that further escalation of the conflict could lead to a decline in investor confidence as the stability of the region becomes increasingly questionable. Many have expressed doubts about the market’s ability to withstand this pressure in the short term.
In the context of growing global uncertainty, investors should be cautious, as events in the Middle East could affect not only regional but also global markets.
